Inflation: Difference between revisions
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Inflation is a rise in the general price level created by the expansion of credit - usually by the government's printing money. It's a "legal" form of counterfeiting made possible by fiduciary (fiat) currency. The solution to inflation is to eliminate fiat currency by allowing the market to select a species (gold backed) currency. | Inflation is a rise in the general price level created by the expansion of credit - usually by the government's printing money. It's a "legal" form of counterfeiting made possible by fiduciary (fiat) currency. The solution to inflation is to eliminate fiat currency by allowing the market to select a species (gold backed) currency. | ||
Inflation usually used a form of taxation when governments face large budget deficits. | Inflation usually used a form of taxation when governments face large budget deficits. | ||
== See Also == | |||
*[[Money]] | |||
== Links == | == Links == | ||
Revision as of 22:01, 17 February 2007
Inflation is a rise in the general price level created by the expansion of credit - usually by the government's printing money. It's a "legal" form of counterfeiting made possible by fiduciary (fiat) currency. The solution to inflation is to eliminate fiat currency by allowing the market to select a species (gold backed) currency.
Inflation usually used a form of taxation when governments face large budget deficits.